There is no shortage of talk about scam coins in the crypto market. Cases where the value drops to almost zero right after they become well known are happening one after another, and these are all designed to trick investors. In fact, crypto scams are far more cunning than many people imagine, and many have suffered major losses.

Looking at typical patterns of scam coins, they first promise enormous profits. After that, either the project team absconds with the funds, or the platform stops functioning. Learning about these scam cases is the first step toward protecting your assets.

First is the standout case of PlusToken (PLT). At its peak, one coin rose to $200, and its market capitalization exceeded $17 billion. It claimed to offer high-yield wallet services, but in reality it was a Ponzi scheme. Once the founders absconded with the funds, investors suffered losses of billions of dollars.

OneCoin (ONE) is also a notorious scam. It surged to $30 per coin, and its market capitalization was estimated at $15 billion. No blockchain, no real transactions, and a completely centralized structure. Founder Ruja Ignatova is still on the run.

Bitpet (BPET) claimed to be an innovative platform that combined DeFi and NFTs. Its highest price was over $10 per coin, with a market capitalization of $200 million. However, in reality there was no white paper, and the code had simply been copied from other open-source projects. Right after launch, the team disappeared.

Wotoken (WTK) was another Ponzi scheme run by the same group as PlusToken (PLT). It reached a market capitalization of $1.5 billion at $10 per coin, but again it was structured so that funds from new entrants were used to pay existing investors. The scammers were arrested in China, and the scheme was exposed.

BitPet (BitPet) emerged as a virtual pet purchase platform that combined games and crypto. It reached $50 per coin and recorded a market capitalization of $800 million, but the development team failed to deliver on its promises, and the funds raised through the ICO vanished. The code was incomplete, and the white paper was filled with only vague promises.

When you look at lists of virtual-coin scam cases, you can see the common points. First, thoroughly investigate the team’s background. It’s essential to check whether there are proven individuals involved and whether there is transparent information disclosure.

Next, assess the quality of the white paper and the roadmap. Real projects are detailed and clear. Scam coins are vague and lack technical depth.

It’s also important to check whether the code is open source and can be audited. There’s no reason to believe that projects guaranteeing high returns without risk exist—100% of the time, they are scams.

Finally, the quality of the community is also a judgment criterion. A strongly active community often becomes an indicator of a real project.

To avoid losses from scam coins, gathering information and exercising caution are the most important. If you learn from these cases, you’ll be able to make smarter investment decisions.